CA Saranya (Practicing Chartered Accountant) (329 Points)
23 August 2011Dear friends,
Pls clarify my doubt.
1. Our client is earning 3 lakhs income from man power supply on which they are voluntarily paying Service tax.
They are also earning another 4 lakhs commission income from sale of scrap and other things...
My question now is whether they have to pay Service tax on this 4 laksh also eh? Also this 4 lakhs is unbilled income...
Pls clear this....
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 23 August 2011
Sale of scrap is not liable to service tax.
CA Saranya
(Practicing Chartered Accountant)
(329 Points)
Replied 23 August 2011
But commission from sale of scrap... is it not covered under business auxilliary services???
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 23 August 2011
Commision from sale of scrap is taxable under BAS. You are paying service tax on the manpower supply without availing the basic exemption of Rs.10 L. Hence you have tax liability on the commission as well. Billing is compulsary under service tax and non-billing does not absolve you from tax.
CA Saranya
(Practicing Chartered Accountant)
(329 Points)
Replied 23 August 2011
Thanks a lot sir...
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